A bipartisan bill to encourage the creation of employee stock ownership plans (ESOPs) has been introduced in the U.S. House of Representatives.
Reps. Ron Kind (D-Wisc.) and Dave Reichert (R-Wash.) last week introduced a bill encouraging the creation of employee-owned businesses through S Corporation ESOPs. Both are members of the House Ways & Means Committee.
According to a press release, the “Promotion and Expansion of Private Employee Ownership Act of 2015” includes provisions to:
- encourage owners of S Corps to sell their stock to an ESOP;
- expand financing opportunities for S Corp ESOPs;
- provide technical assistance for companies that may be interested in forming an S Corp ESOP; and
- ensure that small businesses that become ESOPs retain their Small Business Association certification.